Important Recent Changes
As of March 31, 2024, credit unions with assets of $1 billion or more are required to clearly show how much they earn from overdraft and non-sufficient funds (NSF) fees. This change aims to make these fees more transparent to consumers. Credit unions like CapEd are member-owned and focused on serving our members and prioritizing their financial well-being. We aim to provide lower fees and higher savings rates for our members while operating transparently, keeping our members informed and involved in decisions, and ensuring everyone benefits fairly.
What Are Overdraft Protection and NSF Fees?
Overdraft Protection Fee: If you have opted into overdraft protection, this fee allows you to complete your purchase or payment when you don't have enough funds in your account.
NSF Fees: These fees are charged when you try to spend more than you have available in your account without overdraft protection. Without overdraft protection, the payment or purchase will not be processed, and you will receive a fee for the attempted purchase.
CapEd’s Approach to Overdraft Protection
At CapEd, we call our overdraft protection "Courtesy Pay." Courtesy Pay allows payments and purchases exceeding your current account balance to be paid up to a certain limit per item. A fee is charged for this service. We offer two types of Courtesy Pay for our members to choose from:
Standard Courtesy Pay: Covers overdrafts caused by checks, automatic withdrawals, Bill Pay transactions, and recurring debit transactions.
Extended Courtesy Pay: Includes the items listed for Standard Courtesy Pay and everyday debit card and ATM transactions.
If you do not opt in to CapEd’s Courtesy Pay, NSF fees will apply if your account is overdrawn. To use Courtesy Pay, you must be 18 years or older, have an active checking account in good standing, and be able to repay the negative balance plus the overdraft fee.
To learn more about these services, please visit our website here.
Benefits of CapEd’s Courtesy Pay
- Convenience: Provides a safety net for unexpected expenses and helps you manage cash flow.
- Prevent Declined Transactions: Ensures your transactions go through even if you don’t have enough funds.
- Lower Costs: Our fees are generally lower than alternative options.
- Protect Your Credit: We help you maintain good credit standing by preventing missed payments.
- Avoids Returned Checks: Your checks can still go through, which helps you avoid fees and issues with merchants or creditors.
Additional Ways CapEd Can Help Manage Account Shortfalls:
- Automatic Transfers: Funds can be automatically transferred from your savings or another account into your checking account to cover the payment or transaction.
- Line of Credit Advances: Funds can be pulled from your Line of Credit to cover the charge. You can also manually transfer funds from your Line of Credit whenever needed.
Each Overdraft Protection option may incur a small service fee, typically less than an NSF or overdraft fee.
How We Determine Fees
CapEd is committed to offering fair and affordable services as a non-profit, member-owned Credit Union. We regularly review our fees to ensure they are reasonable and reflect the cost of these services. Currently, our Courtesy Pay fee is $27 per incident if the incident is over five dollars.
Additional Services for Managing Your Account
We are here to help you with your financial well-being and provide tools for your success. Here are additional free resources CapEd offers our members:
Notifications: You can set up alerts to receive text and email alerts for low and negative balances to help you keep track.
Budgeting Tools: Our online tools and apps help you manage your spending and track your finances.
Financial Counseling: We offer counseling for those with frequent Courtesy Pay fees to help you better manage your finances.
Supporting Your Financial Well-being
CapEd’s Mission is to support your financial well-being. We offer free Budgeting Tools, Educational Resources, and Credit Monitoring through our eBanking app and website. Our goal is to provide you with the tools and resources to manage your finances effectively and achieve financial stability. If you have any questions or need assistance, please contact us or view our Financial Assistance page. We’re here to help you navigate your financial journey with confidence.
